CBI Books a Longer Stay: Former Ambani Aide Checks Into Custody Till June 5

Mumbai: A special Central Bureau of Investigation (CBI) court on Wednesday remanded Amitabh Jhunjhunwala, former Group Managing Director and senior executive of the Reliance-ADAG group, to CBI custody until "June 5" in connection with an ongoing investigation into an alleged bank loan fraud case involving Reliance Communications (RCom). The court granted the CBI's request for custodial interrogation, observing that further investigation was necessary to examine the alleged misuse of bank loans, the movement of funds, and the possible role of other individuals linked to the case. Note: The allegations remain under investigation. No court has determined Jhunjhunwala's guilt, and legal proceedings are ongoing. Court Grants CBI Custody Jhunjhunwala was produced before Special Judge "J.P. Darekar", designated under the CBI Act, after the agency formally arrested him earlier this week. On Monday, the special court had permitted the CBI to arrest him formally following his transfer from judicial custody. He had initially been lodged in "Arthur Road Jail, Mumbai", after being brought from 'Tihar Central Prison, Delhi', where he was already in judicial custody in a separate Enforcement Directorate (ED) money laundering case. Following arguments from Special Public Prosecutors 'A. Limosin' and 'Jitendra Sharma', the court allowed the CBI to interrogate Jhunjhunwala in custody until "June 5". Background of the Case The investigation stems from a "State Bank of India (SBI)" complaint filed in 2025 against "Reliance Communications (RCom)", its promoter "Anil Ambani", unknown public servants, and others. According to the CBI, the complaint alleges that the accused caused a wrongful loss of approximately ₹2,929 crore to SBI through irregularities in bank loans and credit facilities extended to the telecom company. The agency is investigating the alleged misuse of: * A term loan of nearly **₹2,000 crore** * Letters of Credit (LCs) sanctioned by a consortium of banks While Jhunjhunwala has not been named as an accused in the CBI chargesheet filed so far, the agency informed the court that its investigation into his role remains active. Why the CBI Sought Custody In its remand application, the CBI described Jhunjhunwala as one of the key executives responsible for coordinating with banks on behalf of Reliance Communications. According to the agency, he: * Served as Group Managing Director of RCom. * Handled negotiations with senior banking officials. * Played a significant role in obtaining loans and financial facilities. * Was the primary link between company management and lending institutions. The CBI argued that his custodial interrogation was necessary to understand: * How bank loans were obtained. * How the borrowed funds were utilised. * Whether funds were diverted or routed through related entities. * Whether any public officials improperly facilitated loan approvals. The CBI alleged that Jhunjhunwala played a key role in securing a "₹1,200 crore loan" from SBI that was sanctioned and disbursed on 'August 29, 2016'. According to investigators: * The loan allegedly remained unpaid. * SBI suffered an alleged wrongful loss of approximately ₹971.25 crore. * Investigators are examining whether the borrowed funds were used for purposes other than those originally approved. These allegations remain subject to investigation and judicial scrutiny. Investigation Into Round-Tripping of Funds The agency is also examining allegations involving "Reliance Infratel Limited", where funds allegedly moved through transactions backed by Letters of Credit. The CBI believes Jhunjhunwala may possess information regarding: * The flow of funds across group companies. * Alleged round-tripping of money. * Internal approvals for financial transactions. * The possible involvement of additional company officials or public servants. Officials argued before the court that questioning him while in custody could help identify other individuals connected to the alleged conspiracy. CBI's Argument Before the Court The investigating agency maintained that Jhunjhunwala's custodial interrogation was essential because: * He occupied a senior management position during the relevant period. * He was closely involved in dealings with lending banks. * His questioning could provide leads regarding financial transactions and internal decision-making. * Confronting him with other accused persons could assist investigators in verifying evidence. The CBI further argued that, given his former position and influence, custodial interrogation would help prevent interference with the investigation while enabling investigators to establish the complete sequence of events. Earlier ED Proceedings Before the CBI sought his custody, Jhunjhunwala had already been arrested by the "Enforcement Directorate (ED)" in connection with a separate money laundering investigation linked to alleged financial irregularities involving Reliance Group entities. He was brought from Delhi to Mumbai under a production warrant to facilitate the CBI's investigation. What Happens Next? With custody granted until June 5, the CBI is expected to continue questioning Jhunjhunwala regarding: * The sanctioning and utilisation of bank loans. * Alleged diversion and movement of funds. * Communications between company executives and bank officials. * The possible involvement of other individuals in the alleged financial transactions. Following the expiry of the custody period, the agency may seek an extension if required or produce him before the court for further judicial orders. Conclusion The court's decision to remand Amitabh Jhunjhunwala to CBI custody marks another development in the investigation into the alleged bank loan fraud involving Reliance Communications. While investigators argue that custodial interrogation is necessary to examine financial transactions and identify the roles of various individuals, the allegations remain under investigation, and no findings of guilt have been reached by the court. The outcome will depend on the evidence presented during the ongoing legal proceedings.